Robert F.X. Sillerman has withdrawn his latest offer to buy back the remaining pieces of his concert promotion company SFX Entertainment, according to a filing with the SEC. This most recent buyout bid, for $3.25 per share, was the Chairman and CEO’s third this year.
Silverman delivered his withdrawal letter to the company’s board of directors on Tuesday, Nov. 17. In a company memo acquired by The Wall Street Journal, he explained that with prices so low ($0.41/share as of Thursday morning), “the time is not right to go forward on this path.” He noted that he will “revisit things as they develop” and that “for now we will rededicate ourselves to providing the best possible experiences for our fans.”
Sillerman currently owns 40.3 percent of SFX stock, according to the SEC filing.
SFX announced in February that it received a bid by Sillerman to buy all remaining shares for $4.75 per share. The board of directors solicited competing bids but investors were interested only in parts of the company rather than the entire company. He later bumped his bid to $5.25 a share, but rescinded it after the stock dropped. He submitted his latest offer in mid-October.
The decision to halt the buy-back bid follows a challenging period for the company. Transportation problems caused September’s TomorrowWorld to offer refunds to disgruntled fans and the One Tribe festival was canceled outright due to sluggish ticket sales. Third-quarter earning fell seven percent to $133.2 million, with operating loss doubling to $41.5 million. “The 2015 full-year financial results will not meet our prior expectations,” Sillerman warned in the earnings release.